United States and Canadian oil producers are worried about the impact of the Organization of Petroleum Exporting Countries (OPEC) oil price war on their industry.
Meanwhile, traders in the markets are betting on production shutdowns to cope with the collapse in demand, triggering WTI crude prices to drop 6 per cent to under $20/bbl overnight.
These are levels not seen since 2002.
Industry Interests and even the premiers in certain provinces in Canada are call for action to be taken against what they describe as predatory dumping.
The politicians have couched the call for new tariffs on oil as a measure to protect energy jobs.
Meanwhile however, oil producing nations which are in need of funds to support health during the spread of COVID-19 may have no option but to continue trying to sell.
One such nation is Iraq. The New York Times reported on Monday that this nation has launched a fund soliciting donations, even as it continues to hope for a positive response from the International Monetary Fund.
Meanwhile, news source cbc.ca said that as the price of oil crashed, provincial authorities continue to call for federal action.
The Western Canadian Select (WCS) fell to a record low of $4.58 per barrel on Monday. Alberta Premier Jason Kenney called for an aggressive approach from governments across North America, the news source outlined.
He wants to see tariffs introduced on foreign oil exports or a united tactic against the price war between Russia and Saudi Arabia.
Last week he also called for an investigation into “predatory dumping,” of crude by the Organization of the Petroleum Exporting Countries (OPEC) into North America.
The problem with OPEC ensured three weeks ago when the Saudis failed to reach agreement with Russia over oil cutbacks, in light of reduced demand.
In response, the Saudis pledged to increase production by thousands of barrels daily.